The Competition and Consumer Protection Commission has secured commitments from Booking.com to allow Irish accommodation providers to offer cheaper rates.

Booking.com, Europe’s largest online travel agent (OTA) platform, had placed pricing obligations on hotels in Ireland, meaning they were unable to offer cheaper rates to other websites or to customers directly.

Following an investigation, the Commission found that some arrangements between Booking.com and Irish hotels restricted price competition and risked infringing on Irish and EU competition law.

Commission Chairman, Isolde Goggin said: “The commitments secured from Booking.com will enable increased competition amongst businesses operating in this sector, benefitting the businesses concerned and also consumers.”

In Association with

Best Price Guaranteed?

Booking.com offers a ‘Best Price Guarantee’, where it will match lower rates for the same room found elsewhere.

While this sounds like a good deal for customers, the ‘price parity’ agreement between Booking.com and hotels prevents the hotels from offering lower prices elsewhere. This meant the ‘best price’ guarantee was as a result of an agreement not to offer lower prices elsewhere. Irish hotels were required to cover the price difference if cheaper deals were found elsewhere.

As a result of the new commitments, Irish hotels can now offer discounts and lower rates on other sites, and to members of loyalty programmes and walk-in customers.

Booking.com can still offer a ‘Best Price Guarantee,’ but it must now cover the cost of any claims itself, rather than obliging the hotel to do so.

Goggins said: “Consumers may believe that using one travel website will guarantee them the cheapest rate but this is not always the case. As well as checking the cost of accommodation on a travel site, it is also worthwhile contacting the hotel directly to see if you can secure a better deal.”

European Pressure

Ireland joins other European countries in securing commitments from Booking.com. Last year, competition regulators from France, Sweden and Italy joined together to investigate complaints about Booking.com's price parity policy.

European hotels pay between 10-30% commission to sites like Booking.com, a percentage they feel is too high, as about 70% of hotel rooms are booked through online sites.